A good investment is one that matches your goals and objectives. Before making any investment you should walk through the questions in How to Make an Investment Plan
to clarify what it is that you want to accomplish with your investment.
Then you can begin aligning your goals with the choices below to determine which of the following might be a good investment for you and your retirement plan.
If your primary goal is capital preservation, meaning protecting the savings that you have, and you are in a low tax bracket, then CDs (Certificates of Deposit) might be a good investment for you. You may have to accept low returns as a trade-off for protecting your principal. Don't forget, you can lose money in CDs in a slow, steady kind of way by losing purchasing power due to inflation. I provide additional information on this in the article at the link above.
Make no mistake: investing in real estate takes work. If you do it right, it can pay off. Just don't fall for the seminars that tell you how easy it is. It's not. Rental real estate can be a good investment that produces steady income in retirement, but you have to do your homework before you take on this type of investing.
Annuities can be an appropriate investment, or they can be the worst thing you could possibly put your money into. It all depends on your goals and on the type of annuity. This article provides an overview of when an annuity is a good investment and when it isn't.
Is going to Vegas and betting on red a good investment? I think most of you would say no. Betting on the price of gold isn't quite like going to Vegas, but it does have some similarities. Once you understand historical gold prices you can decide for yourself if gold has a place in your investment plan.
For most people the right type of mutual fund used appropriately makes a good investment. To find the right type of fund you have to know what mutual fund fees to look for, how to distinguish between actively managed funds and index funds, and how to tell what asset class a mutual fund fits into. If you get a handle on those basics you'll be able to start selecting funds that match your goals.
There are specific questions you can ask, and specific numbers you can look at, to estimate the potential return on a condo investment. Condos can be a good investment, but the numbers have to work out. This article walks through an example of how to estimate the yield on a condo investment.
The best safe investment you can make is one that many people have never heard of. You can buy it online. The value can never go down. It earns an interest rate that is tied to inflation. Sounds decent, doesn't it? It's called an I Bond. Learn more at the link above.
I find it amazing that people conduct internet searches for the phrase "what is a good stock to invest in" but they do. If you're scouring the internet in this way, watch out. There are some serious fraudsters out there who would love to take advantage of you. There is a better way to invest then searching for internet stock tips and I cover it in this article.
One key to finding good investments is having an understanding of what is realistic. What kind of return should you expect on an investment? If you have a good sense of what is and is not possible you are less likely to get scammed.
There are a few ground rules you can use to avoid bad investments. Not all of them are absolute must-follow rules; you can think of them more as guidelines. Particularly if you're a new investor, using these rules to stay away from bad investments can help steer you toward better choices.
If you're not sure how to pick good investments on your own, can an investment advisor help? Maybe. One misconception some people hold is that investment advisors have some insight into what the market is going to do. It doesn't work that way. A good investment adivsor takes the time to understand your goals and put together a long term investment plan designed to achieve those goals.